EPFO Reform Continues: Two Key Changes In The Withdrawal Process

The Employees’ Provident Fund Organisation (EPFO) has done away with two redundant requirements in the withdrawal process. In a significant reform, individuals can now withdraw funds without needing to upload a cheque leaf or bank passbook, and they do not need employer approval to seed their bank account with the Universal Account Number (UAN).

On April 3, 2025, Mansukh Mandaviya, Minister of Labour and Employment posted on X (formerly Twitter), “Two major reforms have been introduced to make the claim settlement process simpler, faster, and hassle-free for crores of EPF members & employers: No need to upload an image of cheque leaf/ attested bank passbook. Bank account seeding with UAN no longer requires employer approval”.

EPFO has been grappling with service issues for a long time and members' complaints have been dragging on for years. Now, these two changes have been introduced as part of reform initiatives to expedite claim settlements and minimise delays.

Let us see the changes in detail.

Uploading Cheque Leaf Or Attested Bank Passbook Is No More Needed:

EPFO allows members to withdraw their EPF funds by filing a claim. However, until now, members have to upload an attested copy of their bank passbook or a cheque leaf of their bank account while filing claims online. However, an unclear or unreadable image would result in claim rejection for many, giving rise to complaints and delays in claim settlement.

By removing the requirement to upload a cheque leaf or passbook, the ministry expects to benefit around six crore members immediately.

Before implementing this change, EPFO piloted it in May 2024 for members with updated KYC and seeing the positive outcome of the change on the 1.7 core members, the change in documentation requirement has been introduced for all.   

This change is expected to reduce grievances related to withdrawal claims.  

No Employer Approval Required For Seeding Bank Accounts With UAN:

The second key reform is the removal of the requirement for employer approval for seeding bank accounts with UAN. UAN is a 12-digit unique number provided to each EPF member. With the UAN, members can submit their claims online, provided that their bank account, PAN, and Adhaar are seeded with UAN.

As per the existing guidelines, if an EPF member wants to seed their bank account with UAN, they can do so through the EPFO’s unified member portal. The member needs to provide their bank detail, which has to be approved by their employer. And only after the approval, it can be seeded with the UAN.

According to the government statement, the EPFO receives about 36,000 bank account seeding requests daily. First, the respective banks verify them, taking around three days. Then, employers review and approve, taking roughly 13 days. The long process leads to delays, increasing grievances, and dissatisfaction among members.

“During the F.Y. 2024-25, 1.3 crore members have submitted their requests for seeding their Bank Accounts, and the requests after due matching with the respective Bank/NPCI are to be approved by the Employer through DSC/E-Sign”, says the statement.

With this reform, the ministry expects to benefit around 14.95 lakh members whose bank account seeding requests are waiting for employers’ approval. Notably, a change in bank account and IFSC code, after seeding it, will also become easy with the verification through OTP linked with the Adhaar of the concerned EPF member.